Monday’s Top Stocks
A fire storm composed of solar gas called a ‘coronal mass ejection’ hit some
of our planet’s communication networks, but fortunately all said and done–the ETFs were left unscathed. Actually, some harsh red damage was inflicted to some
of our trading friends as Mr. Softy
(
MSFT |
Quote |
Chart |
News |
PowerRating) was last seen with some ‘broken
windows’. No need to worry though, Bill’s perfectly alright, and in the end
so were our index proxies as they finished in the green, up fractionally between
.08% to .23%. Above-average volume was evident in all the respective cash indices,
especially so in the Dow Jones, where his royal Softness is a very big component
of today’s trade, with over 200 million shares being shuffled about the table
(so to speak). Market breadth was slightly in favor of those choosing to lighten
their portfolio backpacks on the way back down the mountain (as the ratio came
in at approx. .70)–hmmm, aren’t we supposed to be taking in supplies after
a long descent?
The markets made it Base Camp 1–actually, they dug themselves in a little
bit below the surface before starting their march back up the mountain for another
attempt at the summit. What I’m referring to is the testing of the 50-day EMAs
and the 50% or 62% retracement levels from the September lows. It certainly
wasn’t a ‘perfect pitch’ of the tents, as today did require a couple of attempts,
but they did finally get everything nailed down before they ‘popped ’em up’
for everyone to see. There’s still some storm clouds above, but that’s part
of the climbing game. All you can do is start taking in what you consider to
be the best provisions (stocks) to get the job done, as we look to make another
possible bid for higher ground, trading within the market’s ‘confirmed rally.’
As daytraders or ‘ultra-light’ climbers if you will, we needn’t be bogged down
with all of those provisions that have to be carried by the masses as they prepare
for their mission. We can continue to gain ground or traction of our accounts
by doing what we always do, each and every day. By staying well prepared and
ready to climb on before everyone else decides the time is right to make the
conquest, we’ll be sitting pretty, and ‘high as a kite’ once again in our own
little private Idaho.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
17.71 | up .17 | cvr 1 buy | 2% above | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.45 | down .64 | cvr 1 buy | 1% below | Not At Extreme |
Hottest Sectors : Gold/Silver (XAU) and Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Software
(
SWH |
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News |
PowerRating)
Monday’s stocks to watch:
Technical Strength Top of Range.
Stocks are scanned from TM’s Proprietary and Technology 10 Momentum lists on
the Indicators page, as well as being hand selected, based on the most recent
technical action. This may include some or all of the following: abnormal
volume, price patterns, as well as bullish action off of technical price
supports or clearance of technical resistance in that day’s session.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| Pacific Health | ( PHS | Quote | Chart | News | PowerRating) |
56 | High of day close above daily handle pivots on increased volume |
413 | 374 |
| Sina.com | ( SINA | Quote | Chart | News | PowerRating) |
42 | 30-min.extended Cup and handle on wide range bar w/volume | 10,316 | 17,819 |
| Advance PCS | ( ADVP | Quote | Chart | News | PowerRating) |
49.05 | Engulfing daily hammer on 50-Day EMA reversal w/volume and 1% from 52-week highs |
2,055 | 2,983 |
| Serologicals | ( SERO | Quote | Chart | News | PowerRating) |
14.97 | At daily chart congestion b/o levels within multiweek basing pattern |
636 | 526 |
| Constellation Brands | ( STZ | Quote | Chart | News | PowerRating) |
30.63 | Mid level intraday close on above average volume, near daily mid level pivots within handle formation |
797 | 999 |
Technical Weakness Bottom of Range.
Stocks are scanned from TM’s Implosion and Technology Implosion Lists on the
Indicators page, as well as being hand selected, based on the most recent
technical action. This may include some or all of the following: abnormal
volume, price patterns, as well as bearish technical action at key support,
or resistance levels based on closing prices.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| T. Rowe Price | ( TROW | Quote | Chart | News | PowerRating) |
39.50 | Engulfing bearish bar on volume increase, breaking technical price supports |
968 | 1,497 |
Stock Reversal Setups Closing Basis.
Stocks that are setting up on a closing basis as potential long or short reversal pattern
candidates. Candidates listed may have triggered on a closing basis, or close
to triggering ( my general rule is to list the pattern setup if it is within
+/-.15 of trigger price). Patterns include basing patterns (Slim Jims, 1,2,3s,
Double bottoms) consolidations, and triangle reversals. Background technical
supports in the form of Fibonacci levels, EMAs (DEMA=daily ema), RS, and former
price action are used in the decision making process.
Long Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| Biosite | ( BSTE | Quote | Chart | News | PowerRating) |
28.42 | confirmed daily hammer pivot low with intraday cup and handle pattern and improving stochastics daily |
762 | 605 |
| UT Starcom | ( UTSI | Quote | Chart | News | PowerRating) |
31.24 | 123 daily off the 200-day ema and 50% fibonacci level, closing in bottom of range consolidation on significant volume |
4,067 | 12,024 |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA | NA |
Institutional Favorites and Institutional Laggards.
The following stocks are selected from the Nasdaq, S&P 500 & 600 Indices,
and HOLDRs. These are normally heavily traded, liquid issues that are exhibiting
relative strength or weakness, patterns (consolidations or Slim Jims) , or
last hour volume surges, indicative of follow through in the very near term.
Institutional Favorites
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Linear Technologies | ( LLTC | Quote | Chart | News | PowerRating) |
40.90 | 5,334 | 4,139 |
| Chiron | ( CHIR | Quote | Chart | News | PowerRating) |
56.60 | 2,141 | 2,108 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
33.24 | 7,646 | 8,414 |
| Paychex | ( PAYX | Quote | Chart | News | PowerRating) |
37.57 | 2,523 | 2,032 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
26.61 | 51,824 | 210,000 |
| Schlumberger | ( SLB | Quote | Chart | News | PowerRating) |
47.11 | 3,170 | 3,391 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler